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Question;31. You just received a $5,000 gift from;your grandmother. You have decided to save this money so that you can gift it;to your grandchildren 50 years from now. How much additional money will you;have to gift to your grandchildren if you can earn an average of 8.5 percent;instead of just 8 percent on your savings?;A. $47,318.09;B. $52,464.79;C. $55,211.16;D. $58,811.99;E. $60,923.52;32. You are depositing $1,500 in a;retirement account today and expect to earn an average return of 7.5 percent on;this money. How much additional income will you earn if you leave the money;invested for 45 years instead of just 40 years?;A. $10,723.08;B. $11,790.90;C. $12,441.56;D. $12,908.19;E. $13,590.93;33. You collect old coins. Today, you have;two coins each of which is valued at $250. One coin is expected to increase in;value by 6 percent annually while the other coin is expected to increase in;value by 4.5 percent annually. What will be the difference in the value of the;two coins 15 years from now?;A. $115.32;B. $208.04;C. $241.79;D. $254.24;E. $280.15;34. Your father invested a lump sum 26;years ago at 4.25 percent interest. Today, he gave you the proceeds of that;investment which totaled $51,480.79. How much did your father originally;invest?;A. $15,929.47;B. $16,500.00;C. $17,444.86;D. $17,500.00;E. $17,999.45;35. What is the present value of $150,000;to be received 8 years from today if the discount rate is 11 percent?;A. $65,088.97;B. $71,147.07;C. $74,141.41;D. $79,806.18;E. $83,291.06;36. You would like to give your daughter;$75,000 towards her college education 17 years from now. How much money must;you set aside today for this purpose if you can earn 8 percent on your;investments?;A. $18,388.19;B. $20,270.17;C. $28,417.67;D. $29,311.13;E. $32,488.37;37. You want to have $35,000 saved 6 years;from now to buy a house. How much less do you have to deposit today to reach;this goal if you can earn 5.5 percent rather than 5 percent on your savings?;Today's deposit is the only deposit you will make to this savings account.;A. $733.94;B. $791.18;C. $824.60;D. $845.11;E. $919.02;38. Your older sister deposited $5,000;today at 8.5 percent interest for 5 years. You would like to have just as much;money at the end of the next 5 years as your sister will have. However, you can;only earn 7 percent interest. How much more money must you deposit today than;your sister did if you are to have the same amount at the end of the 5 years?;A. $321.19;B. $360.43;C. $387.78;D. $401.21;E. $413.39;39. A year ago, you deposited $30,000 into;a retirement savings account at a fixed rate of 5.5 percent. Today, you could;earn a fixed rate of 6.5 percent on a similar type account. However, your rate;is fixed and cannot be adjusted. How much less could you have deposited last;year if you could have earned a fixed rate of 6.5 percent and still have the same;amount as you currently will when you retire 38 years from today?;A. $2,118.42 less;B. $3,333.33 less;C. $5,417.09 less;D. $7,274.12 less;E. $9,234.97 less;40. When you retire 40 years from now, you;want to have $1.2 million. You think you can earn an average of 12 percent on;your investments. To meet your goal, you are trying to decide whether to;deposit a lump sum today, or to wait and deposit a lump sum 2 years from today.;How much more will you have to deposit as a lump sum if you wait for 2 years before;making the deposit?;A. $1,414.14;B. $2,319.47;C. $2,891.11;D. $3,280.78;E. $3,406.78

Paper#51176 | Written in 18-Jul-2015

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